Terry Smith Fundsmith LLP
Terry Smith is the founder and CEO of Fundsmith, a firm known for a concentrated portfolio of high-quality global companies. His approach favors simple, understandable businesses with high returns on capital and the ability to reinvest at attractive rates. Smith’s annual letters and plain-spoken commentary have made Fundsmith a frequent reference point for long-only quality investors.
Top Buys
| Rank | Stock | Value |
|---|---|---|
| 1 |
McDonald's
MCD
|
+$358M |
| 2 |
Visa
V
|
+$21.2M |
| 3 |
SIAL
SIGMA - ALDRICH CORP
SIAL
|
+$14.2M |
| 4 |
PepsiCo
PEP
|
+$14M |
| 5 |
Philip Morris
PM
|
+$12.6M |
Top Sells
| Rank | Stock | Value |
|---|---|---|
| 1 |
Microsoft
MSFT
|
+$122M |
| 2 |
Waters Corp
WAT
|
+$30.3M |
Sector Composition
| Rank | Sector | Weight |
|---|---|---|
| 1 | Consumer Staples | 30.69% |
| 2 | Healthcare | 26.2% |
| 3 | Consumer Discretionary | 23.22% |
| 4 | Technology | 6.79% |
| 5 | Industrials | 6.64% |
| Name | Market Value | Portfolio Weight | Shares or Principal |
Change in Stake | Capital Flow | |
|---|---|---|---|---|---|---|
1
Domino's
DPZ
$11.3B
| $152M | 10.08% |
2,229,652
| – | – |
|
2
Stryker
SYK
$126B
| $141M | 9.41% |
2,091,159
+69,742
| +3% | +$4.81M |
|
|
3
McDonald's
MCD
$192B
| $136M | 9.07% |
4,094,461
+3,666,462
| +857% | +$358M |
|
4
Keurig Dr Pepper
KDP
$43.6B
| $136M | 9.06% |
3,036,706
+205,649
| +7% | +$9.47M |
|
5
Becton Dickinson
BDX
$52.3B
| $115M | 7.62% |
1,174,048
+48,581
| +4% | +$4.76M |
|
6
Automatic Data Processing
ADP
$112B
| $102M | 6.79% |
1,604,328
| – | – |
|
7
3M
MMM
$92.3B
| $99.7M | 6.64% |
998,775
| – | – |
|
8
Procter & Gamble
PG
$336B
| $98.4M | 6.55% |
1,301,833
| – | – |
|
|
9
PepsiCo
PEP
$196B
| $91.3M | 6.08% |
1,148,821
+170,675
| +17% | +$14M |
|
10
Johnson & Johnson
JNJ
$651B
| $90M | 5.99% |
1,038,629
| – | – |
|
|
11
Philip Morris
PM
$293B
| $85.8M | 5.71% |
990,377
+143,639
| +17% | +$12.6M |
|
12
Choice Hotels
CHH
$4.93B
| $61.2M | 4.07% |
1,422,535
| – | – |
|
13
Colgate-Palmolive
CL
$72.6B
| $49.6M | 3.3% |
841,004
+56,136
| +7% | +$3.33M |
|
|
SIAL
14
DELISTED
SIGMA - ALDRICH CORP
SIAL
| $49.6M | 3.3% |
430,224
+168,675
| +64% | +$14.2M |
|
|
15
Waters Corp
WAT
$40.4B
| $47.7M | 3.17% |
449,096
-295,256
| -40% | -$30.3M |
|
|
16
Visa
V
$693B
| $47.5M | 3.16% |
994,536
+458,960
| +86% | +$21.2M |
|
|
17
Microsoft
MSFT
$3.59T
| – | – |
-3,525,044
| Closed | -$122M |
|
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Terry Smith's Q3 2013 Portfolio in Review
As of Q3 2013, Terry Smith held 17 positions worth $1.5B, up 5.6% from $1.42B the previous quarter. Its ten largest holdings account for 77% of the portfolio.
Terry Smith deployed $290M of net new capital in Q3 2013, adding to 9 existing holdings.
By sector, the portfolio is most concentrated in Consumer Staples at 31% of assets, up from 30% a quarter earlier, followed by Healthcare and Consumer Discretionary.
On the sell side, the largest reduction was Waters Corp, an estimated $30.3M trimmed.
- Terry Smith added most to McDonald's in Q3 2013, an estimated $358M increase.
- Terry Smith's biggest Q3 2013 reduction was Waters Corp, cutting an estimated $30.3M.
- Terry Smith fully exited Microsoft in Q3 2013, selling an estimated $122M.
- Terry Smith's ten largest holdings make up 77% of its $1.5B portfolio in Q3 2013.
- Terry Smith opened 0 new positions and closed 1 in Q3 2013.
- Terry Smith's portfolio value rose 5.6% quarter-over-quarter to $1.5B.
Based on Fundsmith LLP's 13F filing for Q3 2013, filed 7 Nov 2013.